On April 8, 2024, the City Council adopted the 6th Cycle Housing Element, which covers 2023-2031. The City is responsible to plan for 349 new housing units by 2031.
On April 25, 2024, the State Department of Housing and Community Development (HCD) certified the City's Housing Element. Two city-owned sites, Vista Lobos and Sunset Center, were included as potential affordable housing sites to achieve certification (Housing Element Program 1.1.B: City-Owned Sites).
On July 9, 2024, in response to concerns regarding the redevelopment of the city-owned sites, the City Council passed Resolution 2024-062 directing staff to begin work immediately exploring and developing alternative affordable housing sites and programs to submit a formal general plan housing element amendment that provides alternative affordable housing opportunities and removes the need for housing units at Vista Lobos and Sunset Center. Additionally, staff was directed to return to the City Council in September and October with updates on progress.
September Update
City staff has been participating in the weekly meetings of the Affordable Housing Alternatives (AHA) community group since July 16th. AHA has formed subcommittees of its members to focus on specific housing strategies. Four housing strategies in particular: accessory dwelling units, hotel-to-residential conversions, church sites, and downtown sites are being further explored. These strategies are discussed below in the August 21st community meeting recap.
It is important to note that these strategies already exist as programs in the certified Housing Element. The main focus of the AHA and City collaboration has been to “supercharge” these programs to produce enough potential affordable housing units that the City sites can be removed from the Sites Inventory List altogether.
Each subcommittee is developing a “one-pager” that includes a) proposals and mechanics, b) challenges and mitigating factors, and c) questions.
Additionally, AHA contacted consulting firms with experience preparing housing elements and arranged meetings to discuss strategies to facilitate the proposed housing element amendment. Three introductory calls were conducted jointly by AHA and City staff to get early feedback on strategies that could successfully amend the City’s certified housing element.
On August 16th, city staff released a request for statements of qualifications for technical assistance with preparing an amendment to the housing element. The city received two responses to the request and is in the process of making a final selection. AHA, city staff, and the selected consultant will collaborate throughout September to refine strategies and alternatives to Vista Lobos and Sunset Center for affordable housing.
On August 21st, AHA and the City jointly sponsored a community meeting at Sunset Center, Carpenter Hall, from 6:00 to 8:00 p.m. The meeting was advertised in the Carmel Pine Cone and via Constant Contact. The Carmel Residents Association also promoted the meeting through its channels of communication. Approximately 50 attendees (in person and via Zoom) participated. Feedback was collected both orally and in writing. Another community meeting is tentatively scheduled for early October. The meeting will focus on accessory dwelling units and junior accessory dwelling units.
The four strategies discussed at the August 21st community meeting include:
1. Accessory Dwelling Units & Junior Accessory Dwelling Units (Housing Element Program 1.3.C). This program incentivizes the development of accessory dwelling units.
a. The AHA subcommittee on ADUs is developing an educational brochure.
b. City staff is developing a property owner interest form to better understand needs and constraints.
c. City staff has been collecting data on ADU/JADU approvals and production to demonstrate to HCD a track record of creating new housing units.
d. City staff is working with HCD to determine how reporting of ADUs constructed can satisfy lower-income housing requirements.
2. Hotel-to-Residential Conversions (Housing Element Program 1.3.B). This program encourages the conversion of older hotels to permanent multi-family rental housing. In exchange for providing 15 percent lower-income units, the hotel units can be transferred to another site within one of the commercial districts.
a. The AHA subcommittee on hotel conversions is developing an enhanced program to incentivize conversions.
b. The AHA subcommittee has reached out to industry leaders for input.
c. The AHA subcommittee is exploring the program's financial feasibility, including what incentives may be necessary to generate more interest.
3. Housing on Church Sites (Housing Element Program 1.1.D). This program implements State law, which allows religious institutions to construct housing on their property, irrespective of local zoning.
a. Interest from the faith community was expressed following the August 21st community meeting.
b. The AHA subcommittee on churches is following up with local churches to understand needs and constraints.
4. Downtown Housing Opportunities (various Housing Element programs).
a. The AHA subcommittee is exploring lot consolidations to create a potential project site(s) that is/are financially feasible for affordable housing development.
City staff will return at the October 1, 2024, Council meeting with another update on the efforts to identify affordable housing alternatives to Vista Lobos and Sunset Center.